TradeStalker's
R.B.I. Trader's Update
11 / 15 / 2009
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 11/15/2009
The market opened higher on Friday and the ES reached
1089.75 as the Michigan Confidence survey was released, and
then the market dropped fast. The ES reached 1083.75, at the
1083.00-1082.00 support zone, and then quickly reversed. The
rally stopped at 1093.75, then pulled back to 1090.25 and
traded in that range for a bit. The ES then broke out over
1094 and kept going to a 1096.00 high. That 1094 level then
turned into a pivotal support level, and when it was broken
the ES reversed and rolled over. A steady drop to 1086.25
was reversed with an hour left in stock trading, and the ES
made it back to 1092.50 before backing off a bit before
settlement.
The market is now range bound, as the bounces are not
sticking but the sharp drops are reversed. It has been 2
sided trading with some really nice swings in both
directions. Of the 2 sides, the short side in the high
1090's has been the "easier" trade, and that will likely
continue. If something extraneous would occur to bring a
"flight to safety" into the dollar, the market should get
whacked. Options are fairly cheap with the Vix so low, so a
few Put options for "just in case" isn't a bad idea in my
opinion.
Most of the daily indicators are in a neutral position, but
the sentiment is still a bit too bullish. On Friday the
market avoided a possible collapse by putting together yet
another end of day rally. With the market getting hit in the
afternoon, that is trading range action. So, on Monday look
for early strength, or a failure to clear initial resistance
if there is no early strength, to set up a shorting
opportunity. As long as a pullback holds the late Friday
lows, no damage done and the trading range continues.
However, if the 1086.75-1086.25 area on the ES is not
defended and reversed just like the 1083.00-1082.50 area was
on Friday morning, then the market will have more trouble
and at least test that 1083.00-1082.50 zone. That is the key
support area short term, and a failure to hold that would
open the door for a drop to the 1074.50-1073.75 zone, or
possibly fall to fill the gap and reach the 1067.75-1067.00
area if the downside gathers steam.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1092.00-1092.50
1095.25-1096.00
1098.50-1099.00
1102.50-1104.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1086.75-1086.25
1083.00-1082.50
1080.00-1079.50
1074.50-1073.75
1067.75-1067.00 {gap from 6/6/09}
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1789.00-1789.50
1793.50-1794.00
1798.75-1799.50
1802.50-1804.00
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1779.00-1778.50
1773.00-1772.00
1768.50-1768.00
1763.00-1762.25
December 2009 Dow futures resistance
symbols: emini = ymz9
10244-10248
10267-10271
10296-10301
10327-10334
December 2009 Dow futures support
symbols: emini = ymz9
10197-10193
10161-10158
10136-10132
10082-10077
---------------------------
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Real Time subscribers can view these updates on
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http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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